SouthStar Capital Delivers $8.5MM A/R and Inventory Facility to Fuel National Expansion of Consumer Products Company

The Situation:

A U.S.-based consumer products company specializing in shelf-stable frozen baked goods was experiencing rapid growth driven by increasing demand and expansion into new retail and distribution channels. With products moving through both direct-to-consumer and wholesale partnerships with nationally recognized grocery chains, the business faced rising production costs and extended cash conversion cycles. Inventory build requirements and existing obligations began to strain working capital, creating pressure on cash flow at a critical stage of expansion.

The Solution:

SouthStar structured a $8.5MM combined financing facility, consisting of a $6MM Accounts Receivable facility and a $2.5MM Inventory facility. This dual-approach solution unlocked liquidity from both outstanding receivables and on-hand inventory, providing the company with immediate access to working capital. The structure was designed to scale alongside the business, supporting ongoing production needs, fulfilling larger retail orders, and maintaining operational stability without disrupting existing lender relationships.

The Result:

With improved cash flow and access to scalable capital, the company was able to confidently increase production, support new distribution channels, and meet growing demand without delay. The facility positioned the business to expand its national retail footprint, enter new markets, and continue building on its strong growth trajectory—all while maintaining financial flexibility and operational efficiency.